Colorado Independent Automobile Dealers Association

Dear CIADA Members,

My name is Peppe DeMarco. On Dec. 8th 2010, I was elected President of CIADA. As this was past the editorial deadline for the Jan/Mar issue of the CIADA Insider, this is my first opportunity to communicate with you in my new role.

First a little bit about me. I reside in Ft. Collins and I am the owner of Highline Motors. Originally from Sorrento, Italy, I moved to Chicago in 1978. I started my auto career selling cars for “Svitak Buick”. In 1987, I went to work for “Patrick Dealer Group”. I was the Used Car Director until 1996. That’s when I decided to move to Ft. Collins and start Highline Motors. My wife Sherryl is both my partner in life and business. We have two beautiful daughters Dana and Danielle. We all agree that the move to Ft. Collins was a good one!

Highline Motors has been a long-time member of CIADA. In 2006, we were fortunate enough to be nominated and chosen as the “Colorado Quality Dealer of the Year”.

I would like to inform our members about the new improved website.

At year-end 2010 and after much delay, federal regulators and lawmakers eventually approved and quick implemented three policies which affect most all of us. Understanding the complexity and “what does this mean for me” components of Red Flag Rules, Risk-Based Pricing, and revised Privacy Notices has taken time away from selling cars. CIADA was out-front on these issues and sent email blasts and posted valuable information to www.ciada.org to help us through the maze.

In February, the new and improve www.ciada.org was launched to offer members a more valuable and informative online experience. With links to www.niada.com and its valuable news and training resources, we urge you to visit regularly and take advantage of all tools you can use for the benefit of your dealership.


Sincerely,


Peppe Demarco
CIADA President

CIADA Press Release FOR IMMEDIATE RELEASE Stan's Auto Sales Named 2010 CIADA Quality Dealer of the Year Click Here to see video. Denver, February 4, 2011 - The Independent Automobile Dealers Association of Colorado (CIADA) is pleased to announce that Stan’s Auto Sales, LLC (Stan’s) has been awarded 2010 Quality Dealer of the Year. This prestigious award is given annually to the Independent Dealer which most closely meets the criterion of Ethical Practices, Superb Operations, Business Growth, and Community Commitment. Nominees are received from past Award Winners and members of the CIADA Board of Directors. This year’s nominees created a slate of exceptional Independent Dealerships and business leaders, making the final selection of Stan’s all the more noteworthy. Stan’s was established in 1998. Owner Stan Martin has over three decades of experience in the automotive industry, including sales, sales management, general management and high-volume wholesale purchasing. The mission of Stan’s is to offer the public a large selection of competitively priced vehicles, while providing a laid-back environment in which its customers are afforded an easy and friendly buying experience. Stan’s staff is customer-focused, and brings the further assurance of Auto Check background reports, Better Business Bureau accreditation, and strict adherence to the professional standards espoused by CIADA. In making the 2010 Award, CIADA Executive Director Gary Zimmerman explains, “Stan’s Auto Sales is a testament to the time-tested business credo that taking care of customers’ needs in an honest, thoughtful and thorough manner is the key to building a successful enterprise. Stan Martin and his team exude extreme competence and are the epitome of friendly customer service. They’re not just good folks to buy a car from; rather, the people at Stan’s are the type you’ll want to form a lasting relationship with. And since 1998, many Coloradans have done just that.” Upon receiving the 2010 Quality Dealer of the Year Award, Stan Martin commented, “I am humbled to have received this honor. But more so, I am so very proud of the staff at Stan’s for bringing their best every day. And finally, we are grateful to the thousands of customers who have entrusted their family’s transportation needs to us over the years.” For additional information, contact: Stan’s Auto Sales 7192 Newton St., Westminster, CO 80030 Telephone: 303-650-1011 Facsimile: 720-833-0592 Email: stansasllc@gmail.com Web: www.StansAutoSalesLLC.com CIADA 6464 W. 14th Ave., Lakewood, CO 80214 Telephone: 303-239-8000 Facsimile: 303-237-3305 Email: info@ciada.org Web: www.CIADA.org The Independent Automobile Dealers Association of Colorado (CIADA) Established in 1941, the CIADA is one of the oldest organizations of its type and represents Colorado Dealers in a variety of support roles. Its membership ranks Colorado with the highest percentage of available dealers in the country. CIADA is committed to assisting dealers from the initial dealer application to becoming a dealer to providing ongoing education provided by the CIADA Education & Training Center. The association provides assistance to dealers in obtaining required surety bonds and the necessary forms to comply with the State of Colorado dealer requirements and the importance of representing dealers at the State Capitol and with the State Regulating Agencies is a primary benefit of belonging to the CIADA. ###

After three years of delays, on December 18, 2010, President Obama signed into law the "Red Flag Program Clarification Act of 2010."

Attorneys, doctors, and CPAs fought to be excluded from compliance with the Red Flags Rule and in the end with the help of the US Congress they were successful.

Automobile dealers must comply with the Red Flags Rule which is effective on December 31, 2010.

What are "red flags"? They are the potential patterns, practices, or specific activities indicating the possibility of identity theft.

The Red Flags Rule defines how your dealership must develop, implement and administer your Identity Theft Prevention Programs. Your program must include four basic elements which address the threat of identity theft.

1.Your program must include reasonable policies and procedures to identify the "red flags" of identity theft in connection with the opening of an account in the sale of a vehicle.
2.Your program must be designed to detect the red flags you have identified.
3.Your program must spell out appropriate actions you will take when you detect red flags.
4.Because identity theft is an ever-changing threat, you must address how you will re-evaluate your program periodically to reflect new risks from this crime.
HOW TO COMPLY: A FOUR STEP PROCESS

1.Identify the red flags of identity theft you're likely to come across in your dealership.
2.Set up procedures to detect those red flags in your dealership.
3.Respond appropriately to any red flags to prevent & mitigate Identity theft.
4.Ensure the Program is updated periodically to reflect changes in identity theft risks.
Preventing Identity Theft is a team effort by all members of your staff. The Red Flags Rule requires you to have a written program in place. The attorneys for NIADA (National Independent Automobile Dealers Association) have provided a written program that meets all of the requirements of the rule and allows you to type your dealership name and other information into the document. Go to NIADA.com and in the header section you will see a banner labeled "publications". If you scroll down you will find the Red Flags Rule document. You can make your entries directly into the document and then print your written program with your dealership information in the document. You cannot save the document, so I suggest you print the document before you start modifications. This way you can pencil the changes you will insert for your dealership and then go to the document and make the entries.

Also, as part of the Red Flags Program on www.NIADA.com, you will find the following.

1.An Overview Memorandum of the Red Flags Rule.
2.Guidelines to assist your dealership in analyzing identity theft red flags and developing a written program.
3.A model dealership policy.
4.An employee acknowledgement regarding the Dealership's Identity Theft Program.
5.A service provider agreement addendum regarding the Dealership's Identity Theft Program.
6.A service provider letter regarding the Dealership's Identity Theft Program.
The Red Flags Rule is complex and CIADA is here to assist you with compliance. One of our member dealers has lost six vehicles to Identity theft. Numerous dealers have lost one or two vehicles to Identity theft. In all of these cases the dealer had to reimburse the lender when Identity Theft was discovered. All lender agreements are written in favor of the lender in Identity Theft cases.

Identity Theft is the #1 crime in the U.S. Only 1 out of 700 cases of Identity Theft are prosecuted. Identity Theft is not going away, implementing these procedures under the rule will help to mitigate Identity Theft.


The author of this document is Howard Koziara, Certified Identity Theft Risk Management Specialist and instructor of the Safeguard and Red Flags Rule Classes at CIADA. If you would like to attend a Red Flags Rule class, contact CIADA at 303.239.8000. CIADA members may contact Howard directly with questions about the Red Flags Rule at 303-257-8200 or hkz829@aol.com.

As a service to its Membership, CIADA would like to remind that annual filing and fee for all Colorado businesses which extend or arrange consumer credit is rapidly approaching. The due-date is January 31st. Please be sure to review the notification from the Colorado Attorney General regarding the Uniform Consumer Credit Code, along with the necessary forms and instructions. Please feel free to call CIADA at 303.239.8000 should you have any questions.